What to know about the Strait of Hormuz, a key passageway essential for global energy supply

DUBAI, United Arab Emirates (AP) — Oil prices jumped Monday as the widening war in Iran disrupted tanker traffic through the Strait of Hormuz, highlighting how important the passageway is to the world's oil supply.

The Strait of Hormuz is the narrow mouth of the Persian Gulf through which about a fifth of the world's oil passes. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. Most of that oil goes to Asia.

Any disruption to traffic through the Strait of Hormuz is highly disruptive to the oil trade.

“The scale of what is at stake cannot be overstated,” said Hakan Kaya, senior portfolio manager at investment management firm Neuberger Berman. He said a partial slowdown lasting a week or two could be absorbed by oil companies. But a full or near full closure lasting a month or more would push crude oil prices, trading around $70 on Monday, “well into triple digits” and European natural gas prices “toward or above the crisis levels seen in 2022.”

Here’s what to know about the strait and the widening Iran war.

The Strait of Hormuz is a bending waterway, about 33 kilometers (21 miles) wide at its narrowest point. It connects the Persian Gulf to the Gulf of Oman. From there, ships can then travel to the rest of the world. While Iran and Oman have their territorial waters in the strait, it's viewed as an international waterway all ships can ply. The United Arab Emirates, home to the skyscraper-studded city of Dubai, also sits near the waterway.

The Strait of Hormuz through history has been important for trade, with ceramics, ivory, silk and textiles moving from China through the region. In the modern era, it is the route for supertankers carrying oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran. The vast majority of it goes to markets in Asia, including Iran's only remaining oil customer, China.

While there are pipelines in Saudi Arabia and the UAE that can avoid the passage, the U.S. Energy Information Administration says “most volumes that transit the strait have no alternative means of exiting the region.”

Threats to the route have spiked global energy prices in the past, including during the Israel-Iran war in June.

The strait is not officially closed, but tanker traffic has dropped sharply as satellite navigation systems were disrupted, data and analytics firm Kpler said on X on Sunday. The U.K. Maritime Trade Operations Center reported attacks on several vessels in the area on either side of the strait and warned of elevated electronic interference to systems that show where ships are.

A bomb-carrying drone boat struck a Marshall Islands-flagged oil tanker in the Gulf of Oman, which leads into the strait from the east, killing one mariner, Oman said.

Iran has been threatening vessels approaching the Strait of Hormuz and is believed to have launched multiple attacks.

Global shippers have issued service alerts saying they have suspended operations in the area. Danish shipping company Maersk, the world’s biggest shipping company, said Sunday it is suspending all vessel crossings in the Strait of Hormuz until further notice. Other ocean carriers including Hapag-Lloyd, CMA-CGM and MSC made similar announcements.

“No one is wanting to navigate it, and there’s no insurer who’s willing to stand behind any transport going through there right now.,” said Tom Goldsby, logistics chairman in the Supply Chain Management Department at the University of Tennessee. “Those ships that got stuck in the Gulf are not going anywhere. ... There’s also a whole host of ships that were heading into the Gulf to replace them, and of course they’re anchored or going elsewhere now."

Data and analytics firm Kplr estimated there are 70 laden oil tankers and 75 clean tankers, which carry refined oil products, in the Mideast Gulf, seemingly waiting to pass through. That’s roughly twice as many as usual, according to Kplr. Meanwhile, about 60 tankers are sitting just outside the Mideast Gulf, east of the Strait of Hormuz, in a holding pattern.

Iran temporarily shut down parts of the strait in mid-February for what it said was a military drill. Oil prices jumped about 6% in the following days.

The decision was a rare, perhaps unprecedented shutdown of the strait.

In past times of tension and conflict, Iran has at times harassed shipping though the narrows, and during the 1980s’ Iran-Iraq war, both sides attacked tankers and other vessels, using naval mines to completely shut down traffic at points. But Iran has not carried out repeated threats to close the waterway altogether since the 1980s, even during last year’s 12-day war when Israel and the U.S. bombarded Iran’s key nuclear and military sites.

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Anderson reported from New York.

Oil tankers and cargo ships line up in the Strait of Hormuz as seen from Khor Fakkan, United Arab Emirates, Wednesday, March 11, 2026. (AP Photo/Altaf Qadri)

This image released by the Royal Thai Navy shows Thai cargo ship, Mayuree Naree, that was struck and set ablaze in the Strait of Hormuz Wednesday, March 11, 2026. (Royal Thai Navy via AP)

This image released by the Royal Thai Navy shows Thai cargo ship, Mayuree Naree, that was struck and set ablaze in the Strait of Hormuz Wednesday, March 11, 2026. (Royal Thai Navy via AP)

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows the Iranian Revolutionary Guard's drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows the Iranian Revolutionary Guard's drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard's drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)

In this image provided by Sepahnews of the Iranian Revolutionary Guard on Feb. 16, 2026, shows troops standing at attention during the guard's drill in the Persian Gulf on Monday, Feb. 16, 2026. (Sepahnews via AP)

NEW YORK (AP) — Scottish entrepreneur Mike Welch made his fortune as an online tire retailer. But he says he might've traded that lucrative career for one in funeral services if not for an intervention from the charity of King Charles III.

A dyslexic teenager from a working-class background, Welch struggled with his college entry exams and took a job installing tires after leaving school at age 15. When he lost that gig, he lined up at the Liverpool job center. The job board featured a funeral director's listing — a “great career," he's sure, but “pretty grim" — and an advertisement for a charity event where entrepreneurs could win business grants.

Welch took that one and, less than 24 hours later, found himself inside a church filled with vintage furniture and friendly grandparents. It looked nothing like ABC's “Shark Tank," but he recalls feeling very much like one of the reality show's contestants as he described his proposal to sell cheaper tires to niche customers like his friends who drove souped-up cars.

That was Welch's first interaction with the then-Prince's Trust, which became known as The King's Trust when King Charles III became Britain's ruling monarch in 2023. “It wasn’t a well thought out plan, really,” said Welch, who is now based in Florida. “But they backed me. And they backed my enthusiasm. And they gave me a chance.”

Generations of Brits can tell stories similar to Welch, thanks to The Prince's Trust and The King's Trust, which have been supporting young people launch their careers since 1976, when then-Prince Charles took his Royal Navy severance pay and established the charity at a time of great economic distress for the United Kingdom. In the past 50 years, the King's Trust says it has reached more than 1.3 million young Brits through its education and employment initiatives, creating numerous success stories including those of celebrated actor Idris Elba and noted fashion designer Ozwald Boateng.

As Charles and Queen Camilla continued their first state visit to the U.S. since he became king, they nodded to The King's Trust with a gala Wednesday in New York, as the charity works to deepen its impact in more than two dozen countries including the United States. Attendees included Anna Wintour, Charlotte Tilbury, Donatella Versace, Lionel Richie and Martha Stewart.

At the event, Charles emphasized that “potential and latent talent truly knows no bounds once you help develop it.”

“I won't see the long-distance future,” he told attendees. "But I'm enormously grateful to you all for what you can all do as supporters to help this vital endeavor, to champion the next generation, ensuring their talent and ambition continue to strengthen our societies for many years to come.”

Members of the British Royal Family have traditionally served as patrons of charities, boosting awareness and fundraising for existing organizations in the areas where they rule as nobles. Observers say Charles' lasting interest in young people's employment is evident as he continues lending his title to its expanding work.

The trust's programs reach young people through schools and established nonprofit partners. They include Get Hired, which helps young people land their first jobs, and the Development Awards, a grant that helps them afford purchases to advance their careers such as a laptop or professional clothing.

The Enterprise Challenge is an afterschool program where students develop businesses that address a problem in their community.

“What we see every time is that young people want to be helped. They want to be taken seriously,” said Jeremy Green, a trustee of the King’s Trust Group Company and chair of the King’s Trust USA. "And it’s not just giving them money. It’s giving them opportunity.”

LaKenya Sharpe, principal of The Collins Academy High School in the Chicago neighborhood of North Lawndale, said being taken seriously by such an organization has meant the world to her students. They won King's Trust US' Enterprise Challenge for launching a business that grows and sells fresh vegetables to stores in their area, which lacked access to stores that sold produce.

The “babies” in her community often feel as if no one pays attention to them, she said.

“This shows that they can achieve anything," Sharpe added. "Their belief now is ‘Oh, other people are watching. Other people are seeing this.’ And they ask "How far can this go?" My answer is, “It can go as far as you guys take it. Don’t let anything limit you.'”

Wednesday's gala aims to showcase “the very best of British-American philanthropy through the individual arts, culture, investments between the two countries,” according to The King’s Trust USA CEO Victoria Gore.

The gala arrives at a moment of unusual tension between the elected leaders of the two longstanding allies. British Prime Minister Keir Starmer’s refusal to support the United States’ war in Iran has angered President Donald Trump.

Charles noted the “wonderful opportunity” to celebrate “the enduring cultural bond” between the two countries, whose relationship he said is “rooted in shared creativity, enterprise and values.”

“Reminding us we are truly greater together. That's the point,” Charles told attendees.

The trust’s leaders emphasized they'd been planning anniversary celebrations long before the recent rift. But Charles' emphasis on the country’s deep philanthropic ties could serve as a reminder of their shared interests, said JP Tribe, a senior lecturer in law at the University of Liverpool who has written about royal patronages.

Tribe hoped the gala showed “that both countries have and can continue to engage in very positive public benefit activity that helps the most disadvantaged in our society.”

The King's Trust US has set a goal to reach 1,000 young people in the United States this year.

Their biggest partner in that effort is City Year, the education nonprofit that introduced The Collins Academy to The King’s Trust and sends young adults to help teach in schools nationwide. AmeriCorps members are helping them pilot a version of the “Get Hired” program. They're also relying on the nonprofit Per Scholas and Maryland school districts to test some other programs.

Gore said student participants tend to be very focused on their immediate communities. The goal is to show them they can have an impact where they live.

"Keeping employment in communities and keeping people in communities is actually the key to everyone’s success," Gore said.

Welch said it doesn't require giant investments to make an impact. He received a 500 pound ($677) grant and, perhaps more importantly, a mentor who provided office space for the nascent company that he’d eventually sell for 50 million pounds ($68 million) to Michelin.

He said the blueprint for The King's Trust's expansion to succeed already exists. It's just a matter of building relationships with on-the-ground partners who can reach the people with the most need.

“What we see in Chicago, what we see in Orlando, is really no different -- with obvious local nuances," said Welch, who launched his latest venture the Anglo Atlantic advisory and investment firm. "But it’s not very different to what we see in Liverpool, Birmingham, Manchester.”

Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.

Lionel Richie speaks during a cultural reception with Britain's King Charles III and Queen Camilla, Wednesday, April 29, 2026, in New York. (AP Photo/Yuki Iwamura, Pool)

Lionel Richie speaks with Britain's King Charles III during a cultural reception Wednesday, April 29, 2026, in New York. (AP Photo/Yuki Iwamura, Pool)

Britain's King Charles III speaks during a cultural reception Wednesday, April 29, 2026, in New York. (AP Photo/Yuki Iwamura, Pool)

Britain's King Charles III speaks with Christian Turner, British ambassador to the United States, during a garden party at the British Embassy, Monday, April 27, 2026, in Washington. (Roberto Schmidt/Pool via AP)

Britain's King Charles III meets with President Donald Trump in the Oval Office of the White House, Tuesday, April 28, 2026, in Washington, during a State Visit. (AP Photo/Alex Brandon)